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6 banks fined $6 billion

Wednesday, May 20, 2015 - 01:06

The huge settlement with U.S. and U.K. authorities ends a global probe into misconduct in the currency market. Fred Katayama reports.

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Six big banks got slapped with nearly $6 billion in fines. They settled with U.S. and U.K. regulators over allegations that they had rigged currency markets. Citigroup, Barclays, JPMorganChase, and Royal Bank of Scotland pleaded guilty to conspiring to manipulate foreign exchange rates. Authorities said they used coded language in an electronic chatroom to try to move the prices of euros and U.S. dollars. U.S. Attorney General Loretta Lynch: SOUNDBITE: LORETTA LYNCH, U.S. ATTORNEY GENERAL (ENGLISH) SAYING: "They acted as partners, rather than competitors, to push the exchange rate in directions favorable to their banks but detrimental to many others" UBS and Bank of America received immunity in that antitrust case. Instead, UBS pleaded guilty to rigging the interest rate benchmark known as LIBOR. It paid the Federal Reserve more than $500 million in fines. But that was less than expected, so its shares rose. And Bank of America also paid the Fed $205 million to resolve the central banks' currency probe.

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6 banks fined $6 billion

Wednesday, May 20, 2015 - 01:06